Wall Street Price Targets
Live Blog Update #2 Published
← Back to Full Coverage: Live Updates: Interactive Brokers (Nasdaq: IBKR) Earnings After the Bell
Headed into earnings, Interactive Brokers is trading near current Wall Street price targets. The street currently has a mean price target of $61.89 and a median of $65.
Interactive Brokers received a downgrade from Citi in early June that cited valuation concerns.
All Updates from Live Coverage
Live
Enthusiasm persists after the market received earnings numbers and now its time to listen to the conference call and try to discern guidance for the remainder of 2025.
Live
How has Interactive Brokers stock performed recently after earnings? Lets take a look at how performance dictated where the share price went in the days following earnings.
| Quarter | EPS Surprise | 1-Day Move | 7-Day Move | 14-Day Move |
|---|---|---|---|---|
| Q2 2024 | +1.20% | −1.06% | −4.91% | −12.86% |
| Q3 2024 | −3.77% | −3.01% | −2.06% | +1.72% |
| Q4 2024 | +9.37% | +1.43% | −0.09% | +6.19% |
| Q1 2025 | −2.73% | −8.74% | −2.15% | +3.08% |
Live
As we prepare for the release of Interactive Broker’s Q2 earnings, let’s look at some highlights from their first quarter:
(Keep in mind when looking at the company’s EPS that Interactive Brokers announced a four-for-one stock split after its last quarterly report)
IBKR | Interactive Brokers Group Q1’25 Earnings Highlights:
- Adj. EPS: $1.88 ✅; UP +14.6% YoY
- Revenue: $1.427B (Est. $1.396B) ✅; UP +18.7% YoY
- Adj. Gross Margin: 73% ✅; UP +100 bps YoY
- Net Income: $213M ✅; UP +21.7% YoY
Outlook:
- Revenue: $1.5B ±5% (Est. $1.5B) ✅
- The outlook reflects continued strong customer trading volumes and increased interest income driven by higher margin loans.
- Management expects ongoing growth in commission revenue as market conditions remain favorable.
Q1 Segment Performance:
- Commission Revenue: $514M ✅; UP +36% YoY
- Net Interest Income: $770M ✅; UP +3% YoY
- Other Fees and Services: $78M ✅; UP +32% YoY
- Execution, Clearing and Distribution Fees: $121M ✅; UP +20% YoY
Other Key Q1 Metrics:
- Adj. Operating Income: $1.024B ✅; UP +17.9% YoY
- Adj. Operating Expenses: $372M ✅; UP +10.4% YoY
- Free Cash Flow: $964M; UP +21.2% YoY
- Effective Tax Rate: 8.6% (vs. 8.2% YoY)
- Total Equity: $17.5B
- Customer Accounts: 3.62M; UP +32% YoY
- Customer Equity: $573.5B; UP +23% YoY
- Total DARTs: 3.52M; UP +50% YoY
- Customer Margin Loans: $63.7B; UP +24% YoY
CEO Commentary:
- Thomas Peterffy: “Our strong performance this quarter is a testament to our commitment to providing the best trading experience for our customers. The increase in trading volumes and customer accounts reflects the trust our clients place in us.”
CFO Commentary:
- Paul Brody: “We are pleased to report solid growth in both revenues and net income. Our focus on cost management and operational efficiency has allowed us to maintain strong margins while investing in our platform.”
Strategic Updates:
- The Board of Directors declared an increase in the quarterly cash dividend from $0.25 per share to $0.32 per share, reflecting confidence in the company’s financial health and future growth prospects.
- A four-for-one forward stock split was announced to enhance stock liquidity and accessibility for investors.
Eric Bleeker has been investing for more than 20 years. He began his career working at Microsoft before joining Motley Fool, one of the largest publishers of financial research. In his 15 years at Motley Fool Eric served as the General Manager for Fool.com and led coverage in the Technology & Telecom sector. In addition, he was a featured columnist and has hosted dozens of investing seminars attended by more than a million total investors. Eric has more than 1,000 financial bylines to his name and has been featured in The Wall Street Journal, CNBC, Fox Business, and many other leading publications. He is currently focused on artificial intelligence investing and is a CFA Charterholoder.
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